GLOSSARY

Online Delivery

A service model where restaurants offer food delivery to customers through online ordering platforms, integrating technology to expand reach and streamline operations.

 

What is Online Delivery?

Online Delivery in restaurants is a service that allows customers to order food through websites, mobile apps, or third-party delivery platforms, with the restaurant preparing and delivering the order directly to the customer’s location. This model has become increasingly popular, providing convenience to customers and enabling restaurants to tap into a broader market beyond their immediate physical location. Online delivery can complement a restaurant’s dine-in service or be the primary business model, as seen with cloud kitchens.


Types of Online Delivery Models:

  • Direct Online Ordering: Restaurants develop their websites or apps for customers to place orders directly with them, often offering delivery through their in-house team.
  • Third-Party Delivery Platforms: Restaurants partner with platforms like Uber Eats, Grubhub, or DoorDash, which handle the ordering process and delivery logistics, providing wide visibility and access to a larger customer base.
  • Hybrid Models: Some restaurants utilize both direct online ordering and third-party platforms, maximizing their reach and flexibility in delivery options.

Benefits of Online Delivery:

  • Expanded Customer Base: Access to customers beyond the geographical constraints of a physical location, including those who prefer dining at home.
  • Increased Revenue: Additional sales channel that can significantly boost revenue, especially during times when in-house dining is reduced or restricted.
  • Convenience and Accessibility: Offers customers the convenience of enjoying restaurant-quality food without leaving their homes.
  • Operational Efficiency: Digital ordering can streamline operations, reduce order errors, and provide valuable data on customer preferences and ordering patterns.
  • Marketing and Brand Exposure: Online platforms allow restaurants to increase their brand visibility and engage with customers through promotions and reviews.

Implementing Online Delivery:

  • Choosing the Right Platform: Assess the costs, benefits, and features of different delivery platforms or consider investing in a proprietary online ordering system.
  • Menu Optimization: Create a delivery-friendly menu that maintains food quality during transport and focuses on items with higher profit margins.
  • Packaging and Branding: Invest in high-quality, branded packaging that ensures food arrives in the best possible condition and enhances the customer experience.
  • Logistics and Delivery: Develop an efficient system for managing orders, whether through an in-house delivery team or in partnership with third-party services.
  • Marketing and Customer Engagement: Utilize online and social media marketing to promote the delivery service, encouraging reviews and repeat business.